LL Flooring, once a go-to name for hard-surface flooring, is shutting down for good.
The Virginia-based retailer couldn’t find a buyer during its bankruptcy and is now forced to sell off its assets.
The company filed for Chapter 11 bankruptcy on August 11, hoping to sell the business and keep operating. But after talks with several potential buyers, no suitable offer emerged. “Discussions have not resulted in an offer, with the necessary financing, that would maximize the value of LL Flooring,” the company stated on September 4.
Now, LL Flooring plans to start closing sales at all remaining stores on September 6, 2024.
This process should wrap up in about 12 weeks, though timing will vary by location.
TRENDING: Owner of a Small Grocery Store Chain Warns Over Harris Price Control Policies
It’s a big change for a company that, until recently, ran about 430 stores across 46 states.
The retailer, formerly known as Lumber Liquidators, had already started closing 94 underperforming stores when it filed for bankruptcy.
These closures were set to finish by September.
National flooring retailer LL Flooring is closing all stores, including nearly two dozen in New England after efforts to find a buyer failed. https://t.co/verVUzlKtP
— The Business Journals (@bizjournals) September 6, 2024
So, what went wrong?
Holly Etlin, the company’s Chief Restructuring Officer, pointed to recent setbacks that hurt LL Flooring’s cash flow.
When the pandemic housing boom cooled off, so did the home improvement market. This led to fewer sales and smaller orders for LL Flooring.
It’s a classic case of market shifts catching a company off guard.
During the pandemic, homebound consumers poured money into renovations, boosting companies like LL Flooring.
But as life normalized and interest rates climbed, the home improvement frenzy faded.
The numbers tell the tale.
LL Flooring’s bankruptcy filing shows assets between $500 million and $1 billion, with liabilities ranging from $100 million to $500 million.
The company also listed between 50,001 and 100,000 creditors.
🚨U.S. Chapter 11 bankruptcies are SOARING:
– Total filings +34% YoY in first half of 2024
– Small business filings up +61% YoY
– June saw the highest corporate bankruptcies since 2020
Small and mid-sized businesses, especially in consumer discretionary sectors like clothing… pic.twitter.com/lm194RzIuq
— Genevieve Roch-Decter, CFA (@GRDecter) August 12, 2024
This situation highlights how quickly fortunes can change in retail, especially for businesses tied to housing and consumer spending.
It’s also a reminder of the challenges facing brick-and-mortar stores in our increasingly online world.
For customers, LL Flooring’s closure might mean some good deals in the short term.
But it’s also a loss of a familiar option for home improvement projects.
More broadly, it’s another example of how changing economic conditions can reshape the business landscape, often at the cost of jobs and consumer choice.
READ NEXT: Another Major Solar Power Company Files For Bankruptcy Protection
As LL Flooring prepares to exit the market, it leaves behind questions about the health of the home improvement sector and the future of specialty retail in America.
